And how,,pray tell..will they set a value on the mortgages?
Ten cents of the dollar?
Will the price be set at what is required to keep the bank in business?..Or will it be set to kill off 50% of the bank equity?
Without some market mechanism, how will they set the price?
Good questions for which I have no answers.
I suspect the govt will be overly generous on values to prevent triggering the derivative time bomb.
Since we taxpayers own them now, will we be able to lower those nice fat paychecks to say 35k/yr?